There are two main options for an individual to have a car that he can use. One of this is the auto lease. This option is similar to renting a car. You don't own the car but you have the right to use it. Another popular option is buying the vehicle by using one of the auto loans offered by the lenders. Through this, you will have the opportunity to use the vehicle in whatever purpose that you want. Aside from this, there are many similarities that auto loans and auto lease have in common. If you want to know these, try to read the things provided below.
1. Involves monthly payments
One of the basic similarities that auto loans and auto lease have in common is the payment of monthly premiums. When you lease a car, you are required to provide the owner of the car with the payments in exchange for using the car. You would be doing this on a monthly basis until the lease contract ends. As long as you pay these premiums, you will be allowed to use the car that you are leasing.
This is also true when it comes to auto loans. When you buy a car through a loan you are required to pay the lender a certain amount of money each month until the loan term ends. This serves as your payments for the amount that you have borrowed when you purchase the vehicle. These payments will only stop when you successfully pay the loan off.
2. Involves down payments
Another similarity involved in most auto loans and lease is the down payment requirement. Although there are loan deals that offer zero down payments, most of these requires you to pay a specified amount before you get the car. This is the same through in leasing. You will only be allowed by the lease provider to drive the car home when you already paid him with the down.
The amount of down payment that you provide for auto loans or lease also affects the amount that you are paying each month. The higher the down payment, the lower the monthly premiums become.
